DGCX adds 44 blue-chip Indian SSFS to its equities portfolio
DUBAI: Encouraged by strong investor appetite and robust trading performance on its existing Indian Single Stock Futures (SSF), the Dubai Gold & Commodities Exchange (DGCX), having received regulatory approval, has announced the launch of an additional 44 blue-chip Indian SSFS, further expanding its Equities asset class vertical. With the listing of additional Indian SSFS, local and regional traders can now participate in the price performance of numerous stocks that fall within the major indices in India. Additional SSFS would be listed for trading on the Exchange from December 8th, 2017.
DGCX Indian SSFS mirror the price of selected underlying Indian stocks, providing traders and investors with the ability to replicate price performance for their usual equity trading strategies with the advantages of futures products and centralized clearing. This provides THE ADDED Beneit of ACCESS to INDIAN equities with the familiarity of cash settlement, appealing to market participants from the professional and retail community.
The Exchange’s Indian SSFS witnessed strong growth from July to the end of October 2017, trading a total of 851,108 contracts, up tenfold from 2016, with a value of USD$ 5.42 billion. In October, the average daily volume was 10,750 lots valued at USD 64 million per day, with Open Interest of 2,042 lots.
Gaurang Desai, CEO of the Dubai Gold and Commodities Exchange (DGCX), commented on the launch: “We’ve seen volume growing strongly in our Indian SSF throughout 2017, which further encouraged us to add whole range of Indian SSFS in our Equity portfolio. The new Indian SSF will continue be traded and settled in USD beyond Indian market hours and comes without any foreign exchange risk, in a tax-free ecosystem.”
Some of the new additions include Hindustan Unilever, Tata Motors, Tata Steel, Wipro, Hindustan Petroleum Corporation, HCL Technologies, Bank of Baroda, Bosch Ltd, Zee Entertainment Enterprises Ltd and Indian Oil Corporation Ltd.
Gaurang added: “Providing our members and traders with access to participate in the growth and price performance of Indian bluechip companies through our own platform is unique in the international markets, and in line with our commitment to be pioneers in the growth of the regional derivatives industry while growing our Equities asset class vertical. Our endeavour is to meet the investment and hedging needs of a broader range of market participants in the region as well as worldwide, and in keeping with that goal, we will continue to expand the breadth and depth of our product range.”
Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region.